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Can We Take a Tax Deduction for In-Home Health Care Services?
My husband needs assistance with daily living activities. Can we deduct the cost of a helper?
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You can deduct the cost of in-home health care services generally provided by nurses—such as giving medication, bathing, dressing, grooming, etc. – as a medical expense, subject to the adjusted gross income (AGI) limit. However, other personal and household services like laundry, cleaning, shopping and dishes aren’t deductible. Therefore, you must apportion the cost of the caretaker.
Additionally, the medical deduction is limited to unreimbursed expenses exceeding 10% of AGI. For taxpayers 65 and older, this threshold will be 7.5% through 2016; therefore, if you are over 65, your AGI is $40,000, 7.5% of which is $3,000, and you have $4,000 worth of qualifying medical expenses, you can deduct $1,000 worth of expenses in 2016.